Leases

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Leases

Note 11. Leases

Operating Leases

The Company leases office space under agreements classified as operating leases. The Company’s active leases as of March 31, 2022 are for office and manufacturing space in Tucson, Arizona, which expire in 2025. The Company’s leases do not include any contingent rental payments, impose any financial restrictions, or contain any residual value guarantees.  

The components of lease cost for operating leases were as follows:

	Three Months Ended March 31,
	2022		2021
Operating leases
Operating lease cost	$	119,458	$	167,679
Variable lease cost		27,526		26,151
Total rent expense	$	146,984	$	193,830

The table below summarizes other information related to the Company’s operating leases:

	Three Months Ended March 31,
	2022			2021
Cash paid for amounts included in measurement of operating lease liabilities	$	117,952		$	172,095
Weighted-average remaining lease term – operating leases		2.8			0.8
Weighted-average discount rate – operating leases		5.8	%		6.3	%

Remaining maturities of the Company’s operating leases, included in operating lease liabilities – current and other non-current liabilities, in the condensed consolidated balance sheets as of March 31, 2022 are as follows:

2022	$	363,597
2023		484,719
2024		484,631
2025		40,381
Total		1,373,328
Less present value discount		(108,812	)
Total operating lease liabilities		1,264,516
Less operating lease liabilities – current		(423,111	)
Operating lease liabilities - non-current	$	841,405

Financing Leases

The Company has computer and copier equipment leases that are classified as financing leases. Incremental borrowing rates used to discount future lease payments in calculating lease liabilities were estimated by reference to information received by the Company from bankers regarding estimated current borrowing rates for collateralized loans with similar amount and duration as the leases. The Company does not have any material financing leases where it acts as a lessor.

The components of lease cost for financing leases were as follows:

	Three Months Ended March 31,
	2022		2021
Financing leases
Amortization of right-of-use assets	$	4,618	$	7,099
Interest on lease liability		1,137		1,665
Total financing lease cost	$	5,755	$	8,764

The table below summarizes other information related to the Company’s financing leases:

	Three Months Ended March 31,
	2022			2021
Weighted-average remaining lease term – financing leases		2.6			3.3
Weighted-average discount rate – financing leases		9.77	%		9.77	%

As of March 31, 2022, remaining maturities of the Company’s financing leases are as follows:

2022	$	14,943
2023		18,396
2024		16,080
Total		49,419
Less present value discount		(5,943	)
Financing lease liabilities, net	$	43,476

Financing lease liabilities net of discount of $16,038 and $27,438 were included in other current liabilities and other non-current liabilities, respectively, and financing right-of-use assets of $39,034 were included in property and equipment, net, in the condensed consolidated balance sheets as of March 31, 2022.